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RECENT NEWS

No GST on sale of complex/building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. Certificate issued by chartered Engineer is of no relevance.
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The effective rate of GST in case of sale of under construction complex/building or ready to move-in flats where completion certificate has not been issued at the time of sale is 12% (after allowing 1/3rd abatement of value of land)
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A report of the Revenue audit party is merely information and opinion. It is not new or fresh or tangible material. If the reassessment notice is solely based on an audit opinion, it means it is issued on change of opinion which is not permissible. [FIS Global Business Solutions India Pvt. Ltd vs. PCIT(Delhi HC)]
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The conversion of a company into a LLP constitutes a "transfer" and if the conditions of s.47(xiiib) are not satisfied, the transaction is chargeable to 'çapital gains' u/s 45 of the Act. [ACIT Vs. Celerity Power LLP (ITAT Mumbai)]
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An order passed by the Tribunal even one day after the prescribed period of 90 days from the date of hearing causes prejudice to the assessee and is liable to be recalled and the appeal posted for fresh hearing. [Kaushik N. Tanna vs. ACIT (ITAT Mumbai)]
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S. 68 Black Money in HSBC Bank Account (i) Non-residents are not required to disclose their foreign bank accounts and assets to Indian income-tax authorities (ii) The assessee cannot be asked to prove the negative that the credits found in HSBC Bank is not sourced out of income derived from India (iii) the Govt / legislature never intended to tax foreign accounts of non-residents (iv) mere holding of an account outside India does not have led to the conclusion that the amount is tax evaded. (ITAT Mumbai- DCIT vs. Hemant Mansukhlal Pandya)
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As per AAR Maharashtra, DFIA cannot be considered as Duty Credit Scrips, hence GST is applicable on purchase/sale of DFIA license.
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As per AAR Maharashtra, assessee is liable to pay GST on providing back office support service, payroll processing, maintaining records etc to overseas clients.
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Listed Companies to disclose detailed reason for delay in filing financial results to Stock Exchanges within 1 working day of the due date or such decision.
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It cannot be inferred that the assessee has manipulated the share price merely because it moved up sharply. The AO has to produce material/evidence to show that the assessee/ brokers did price rigging/manipulation of shares. The AO must also show that the relevant evidence produced by the assessee in the form of bills, contract notes, demat statement, bank account etc to prove the genuineness of the transactions are false or fictitious or bogus. [Arun Kumar vs. ACIT (ITAT Delhi)]
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New functionality FORM-DRC 20 enabled on GST portal for choosing an option to make deferred payment of the GST liability by the assessee's who cannot make payment in one go.

Changes in e-way bill has been made to be effective from 16.11.2018 for better motoring and compliance.

Bombay HC to re-consider petition for reopening of GST TRAN-1 to rectify human errors if Govt. do not consider representation.

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Last date of Filling of Annual Returns and Financial Statement with ROC extended till 31st Dec. 2018
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MCA establish office of ROC at Dehradun and Vijayawada for discharging functions under Companies Act.
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The ITAT should give priority to the hearing of MAs. None should be compelled to move the High Court and seek an out of turn hearing. [(Lupin Investments Pvt. Ltd vs. ITAT (Bombay High Court)]
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Committee of creditors has finally chosen ArcelorMittal as the preferred bidder for Essar Steel.
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Due date to file GSTR 3B for the month of September 2018 is being extended up to 25th October 2018 with a view to give more time for availment of ITC for the period July 2017 to March 2018
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The information given by DIT (Inv) can only be a basis to ignite/ trigger "reason to suspect". The AO has to carry out further examination to convert the "reason to suspect" into "reason to believe". If the AO acts on borrowed satisfaction and without application of mind, the reopening is void. [Devansh Exports vs. ACIT(ITAT Kolkata)]
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MCA amended Schedule III of CA13 & introduced format of financial statement for NBFCs complying with Ind AS.
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MCA amended Schedule III of CA13 & introduced format of financial statement for NBFCs complying with Ind AS.
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Failure by the AO to offer cross-examination of the persons whose statements are relied upon means that no adverse inference can be drawn against the assessee. Dept's plea for a remand is not acceptable if the assessee has discharged primary onus (Nova Promoters 342 ITR 169 (Del) & Jansampark Advertising 375 ITR 373 (Del) distinguished). Paradise Inland 98 CCH 0417 followed. [(Rajat Exports Import (India) Pvt. Ltd vs. ITO ITAT Delhi)]
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Government may come out with an ordinance to make changes to the CA13 to promote ease of doing business, ensure improved corporate compliances and expedite insolvency proceedings.
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“Once genuineness, creditworthiness and identity of investors are established, no addition could be made as cash credit for the excess premium paid to subscribe shares. [PCIT vs. Chain House International (P.) Ltd” (HC of Madhya Pradesh)]".
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ITC can not be allowed on stock transfer from H.O to its branches in other states at zero values
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The "right to sue" which arises on breach of a development agreement is a "personal right" and not a "capital asset" which can be transferred. Consequently, the damages received for relinquishment of the "right to sue" is a non-taxable capital receipt (all judgements considered). (ITAT Ahmedabad- Bhojison Infrastructure Pvt. Ltd vs. ITO)
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Gain arising to the assessee on account of securitization of lease receivables and credited to the Profit & Loss Account is a taxable receipt in the year of securitisation as per T. V. Sunderam Iyengar 222 ITR 344 (SC). Argument that the entry represents hypothetical income and not real income and that the amount is assessable in subsequent years on receivable basis is not correct. Question of whether income can also be deferred to subsequent years under the "Matching concept" as per Taparia Tools 260 ITR 102 (Bom)/ 372 ITR 605 (SC) left open. [L&T Finance Limited vs. DCIT (Bombay High Court)]
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“Expenditure incurred on a project, which was subsequently abandoned, can be claimed as pre-operative expenses under a new project operated through common funds, keeping the control of all business units under the hands of the assesse. [Chemplast Sanmar Ltd. vs. ACIT(Madras HC)]”
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If no cash is involved in the transaction of allotment of shares and it is a case of book adjustment, provisions of s. 68 treating it as unexplained cash credit are not attracted. [V. R. Global Energy Pvt. Ltd vs. ITO (Madras HC)]